William J. Wineberg, and the Estate of Janet R. Wineberg, Deceased, William J. Wineberg v. Commissioner of Internal Revenue

This appeal involves deficiencies in federal income taxes for the years 1950 through 1953, in the total amount of $132,234.18, plus additions to tax (under I.R.C.1939, Sec. 294(d)) of $13,877.03. The taxpayer and his wife filed joint income tax returns for the taxable years 1950 through 1953 with the District Director of Internal Revenue for the District of Washington, at Tacoma, Washington. Since all questions hereinafter considered involve only the Internal Revenue Code of 1939, as amended, all references in this opinion to the Internal Revenue Code, or I.R.C., are to be understood as referring to the Internal Revenue Code of 1939 as amended. On November 10, 1958 the Commissioner of Internal Revenue mailed a Notice of Deficiency for the four taxable years in certain specified amounts, totaling, with alleged additions under I.R.C. Sec. 294 (d), $139,969.94. On January 26, 1959, the taxpayer filed a petition with the Tax Court for a redetermination of the deficiency under the provisions of Section 272, I.R.C. In an Amended Answer the Commissioner asserted additional deficiencies and additions and adjustments to the tax, for the four years in question.

Many facts were stipulated…